India Australia Trade

Recent Trends and Developments

• The First India-Australia 2+2 Ministerial Dialogue was held on September 11, 2021. The dialogue reflected the growing convergence between India and Australia on security issues and a shared commitment to a free, open, prosperous and rules-based Indo-Pacific region.
• On April 2, 2022, India and Australia signed the Economic Cooperation and Trade Agreement (IndAus ECTA) under which both countries are providing duty-free access to a huge number of goods and relaxing norms to promote trade in services. The Indo-Australia agreement is expected to increase bilateral trade from the existing US$ 27.5 billion to US$ 45 billion in five years.
• India and Australia made a commitment during the Virtual Leaders’ Summit held in June 2020, which was to have AISRF Special COVID-19 Round in 2020, pursuant to that, the AISRF COVID-19 special round projects (on COVID-19 screening & diagnostic testing and cardiac marker) were announced in December 2020. Grants for round 14 of the AISRF were announced in March 2022, including in areas of quantum technologies, earth observation remote sensing, groundwater resources management and downstream processing, recycling and tailings reclamation of critical minerals, COVID-19 long-term health impacts, infection prevention and control, digital health and telemedicine, biomaterials (including bioplastics).
• Prime Minister of India Mr. Narendra Modi and Mr. Scott Morrison, former Prime Minister of Australia held the 2nd India-Australia Virtual Summit on March 22, 2022. A joint statement was issued at the conclusion of the summit. The list of outcomes and documents announced/signed include MoU on Co-Investment in Australian Critical Minerals Projects between Khanij Bidesh India Ltd. (KABIL), India and Critical Minerals Facilitation Office (CMFO), Australia; MoU for cooperation and collaboration on broadcasting between Prasar Bharati, India and Special Broadcasting Service (SBS), Australia; establishment of the annual summit between India and Australia.
• Minister of Parliamentary Affairs, Coal and Mines Mr. Pralhad Joshi visited Australia from July 3-8, 2022 and held a meeting with Mr. Madeleine King, Minister for Resources and Minister for Northern Australia to strengthen cooperation in critical minerals.
• External Affairs Minister Mr. S. Jaishankar and Foreign Minister Ms. Penny Wong held the 13th FMFD in Canberra on October 10, 2022, during which bilateral, regional, and multilateral issues of mutual interests were discussed.
• The free trade agreement (FTA) between India and Australia, came into effect on December 29, 2022. The much-awaited deal between the two countries will bolster trade ties and will help boost bilateral trade in goods and services to cross US$ 70 billion in the next five years. The FTA deal will help both countries gain from exports and imports. The FTA between the two countries officially known as Economic Cooperation and Trade Agreement (ECTA) between India and Australia provides an institutional mechanism to encourage and improve trade between the two countries.
• During the India-Australia 18th Joint Ministerial Commission meeting, which was held in March 2023, the two countries discussed taking their bilateral trade to US$ 100 billion in the next five years through a deal that will target new areas such as critical minerals, mobility, education, sports, space, and defence being opened up to each other. Also, the ministers confirmed that the two governments have started negotiating a Comprehensive Economic Cooperation Agreement (CECA).
• Australian Prime Minister Mr. Anthony Albanese informed in March 2023 that Australia and India have agreed to accelerate a broader economic partnership to boost their defence ties.